Belvedere Acquisition Analysis

Assignment on Belvédère

04/02/2014

Introduction

This report lies within the scope of the module Advanced Financial Statement Analysis. The aim of the study is to analyse a recent acquisition led by the company Belvédère, in 2006. Belvédère is a French company specialized in wines and spirits. Belvédère has recently acquired Marie Brizard and Roger International, another French company competing in the same market of wines and spirits. The study will show a financial analysis of the acquisition, with a look on the disclosures on pensions and other employee benefits, on the tax exposure and all the motives of this acquisition.

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Two entrepreneurs, Jacques Rouvroy and Krystof Trylinski, created Belvédère in 1991. At the beginning specialized on premium white alcohols for Eastern Europe market (particularly Poland), the company knew a strong growth following its going public, in 1997. Today still, the company is very present in Poland, where it counts 4 000 employees, and carries out 57.6% of its turnover. Starting from 2001, the limited company adopted a strategy of external growth, by repurchasing various companies (Belvédère group is currently composed by 7 companies). The investors then voted this risky strategy. Moreover, the credit rating agencies were giving at that period good rating to the group’s obligations. The last and larger acquisition of the group is the company Marie Brizard & Roger International, bought on April 7th, 2006 for 475 million euros. Belvédère carried out this acquisition to diversify geographically and reach new markets, such as France and United States. Its turnover thus passed from 162 million euros in 2001, to 1 1185 million euros in 2008.

On December 23rd, 2005, The Company concluded a contract for the indirect acquisition from the participation of 69,3% held by Duke Street Capital Company in the capital of Marie Brizard. The transaction was carried out on April 13th, 2006 for a full amount of 213.4 M€. 2006 was...